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Ryckman Creek seeks authorization to borrow under bridge facility
By Sheri Kasprzak
New York, Feb. 26 – Ryckman Creek Resources, LLC is seeking authority to borrow under a $5 million bridge facility while it finalizes a long-term debtor-in-possession financing, according to an emergency motion filed Friday with the U.S. Bankruptcy Court for the District of Delaware.
Ryckman received authority to borrow under a $3 million bridge financing facility and received approval to increase the size of the bridge to $5 million. The debtor hopes to schedule a final hearing for the request as soon as possible.
“As stated in the initial DIP motion, the company and the prepetition lenders are negotiating the terms of a long-term DIP facility,” said the motion.
“Although the debtors and their advisors have worked diligently with their creditor constituencies and third parties to secure the long-term DIP facility and are hopeful that such a financing will be finalized in the near term, the debtors have not yet been able to finalize a commitment by any party to provide such financing. In the meantime, the bridge lender has agreed to extend the incremental bridge financing, subject to this court’s approval, which should provide the debtors with the liquidity needed to finalize the DIP facility credit agreement. Absent the additional funding for which the debtors seek approval by this motion, the debtors will have no funding to continue operations past March 7, 2016.”
Ryckman Creek is a Houston-based gas storage services company. It operates as a subsidiary of Peregrine Midstream Partners, LLC. Ryckman filed for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware on Feb. 2. The case number is 16-10292.
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